Economy

Nancy Pelosi predicted CBO’s terrible Obamacare report

On Tuesday, the Congressional Budget Office released its regular report scoring Obamacare’s impact on the budget and economic outlook over 10 years. It fails, of course. Big time. But at least Democrats saw it coming.

While arguing in support of the bill just after its passage in 2010, House Speaker at the time, Nancy Pelosi called Obamacare an “entrepreneurial bill”:

…a bill that says to someone, if you want to be creative and be a musician or whatever, you can leave your work, focus on your talent, your skill, your passion, your aspirations because you will have health care.

Nevermind that someone else will be subsidizing your funemployment. Not only was this loss of 2.5 million jobs over 10 years expected, it was celebrated by Pelosi (and presumably many other Democrats) as a good thing.

Has NSA spying poisoned the growing cloud computing industry?

Domestic spying by our nation’s security services have truly injured our nation’s commitment to civil liberties, and have made us all wonder how safe our privacy truly is. The revelations made by Edward Snowden—plus further discoveries such as the NSA intercepting computer purchases to install transmitters to track and spy on consumers, and turning on your webcam to look at you without your knowledge—have triggered demonstrations across the country, a rise in awareness of privacy software such as Tor and use of cryptocurrencies like Bitcoin. Yet people I talk to—both in the real world and in cyberspace—are cynical about the chances of genuine reform, and it always comes back to this: Does it hurt big business?

Such is life when our economy is as corporatist as it is. Things will only change if the big corporations that stand to make a ton of cash feel threatened. Even though there have been some noise made by Verizon, Google, Apple, and other companies, most people shrug these off as just public relations, just throwing a bone to their privacy minded consumers but not actually changing anything on the back-end. However, as a recent paper by the R Street Institute’s (disclosure: I am an associate policy analyst there) Steven Titch explains, NSA spying may have potentially poisoned one of the greatest developments of the Web 2.0: cloud computing.

Low incomers are better off now in spite of lower minimum wage

President Obama’s statement concerning the lack of solid evidence supporting that a higher minimum wage costs jobs, has already been fact-checked and the results were everything but favorable. To the President.

Supporters of a higher federal minimum wage often overlook the importance of observing changes to the conditions of those who would be affected by such policy. They simply assume that the results should be favorable considering that everybody’s wage would go up. Like magic, everyone would suddenly become a little richer.

Aside from the obvious disincentive companies will have to factor when looking into hiring once a higher minimum wage law kicks in, supporters of an increased federal minimum wage simply ignore the fact that we, as a nation, have not been relying on the minimum wage as much as Americans did 20 years ago. Policy has already shifted in order to focus on poor families, which has made low incomers earn much more today than they did 40 years ago.

While it’s true that the federal minimum wage is actually lower now than it was in the 1960s, people who are earning minimum wage now are not poorer than those earning minimum wage back in the day, and that’s due to other policies entirely.

Pew Poll: A Plurality of GOPers Oppose Intervention in Syria

Pew poll on Syria

According to new survey data from Pew, a plurality of self-identified Republicans oppose bombing Syria to help we-don’t-really-know-who. Across partisan divides, respondents overwhelmingly believe that a U.S. military intervention would elicit significant blowback, and would likely lead to an actual war (as opposed to a strategic, surgical bombing campaign to even the score for the rebels fighting Assad’s regime):

Three-quarters (74%) believe that U.S. airstrikes in Syria are likely to create a backlash against the United States and its allies in the region and 61% think it would be likely to lead to a long-term U.S. military commitment there. Meanwhile, just 33% believe airstrikes are likely to be effective in discouraging the use of chemical weapons; roughly half (51%) think they are not likely to achieve this goal.

Read the full report here (PDF).

ObamaCare will undo itself

If something isn’t done to stop the train wreck known as Obamacare before next year, the healthcare system and the economy will suffer. Tea Party Republicans in the House and Senate have vowed to “defund” Obamacare even if it means shutting the government down.  Obviously, opponents of this law should do everything possible to stop this from happening…right?

Maybe it’s not so obvious.

Obamacare cannot truly be defunded because the spending is built into the law itself but for the sake of argument, lets say there was some loophole that would make defunding possible. Why would Republicans want to bail the Democrats out? The Democrats own this legislation because not a single Republican voted in favor.

Let the Democrats suffer the consequences at the ballot box in 2014 and 2016. If the Republicans somehow managed to delay, add exemptions from some of the laws worst aspects, or alter Obamacare’s implementation, the Democrats would then have an out. President Obama could resort to his usual demagoguery in the campaign season the “Affordable Care Act would have worked if the Tea Party extremists hadn’t screwed it up!” The Obama media would be more than happy to echo this party line.

There is a better way. What if allowing Obamacare to be fully implemented as scheduled would lead to its ultimate demise? Far from trying to soften the blow or delay the law’s implementation, opponents of the bill, especially Republicans in positions of leadership should call the president’s bluff and let the train wreck occur. Over the many objections from many of us, Obamacare passed, failed numerous repeal efforts, and prevailed in the Supreme Court.

NLRB Illegally Wades into Labor Dispute; Private Sector Fights Back

Just a couple of short years after using litigation to intimidate Boeing into either allowing new South Carolina employees to organize, or to move those new jobs to a state with stronger labor protections, two regional directors of Obama’s National Labor Relations Board asserted themselves in a labor dispute in New York earlier this year between Cablevision and the Communications Workers of America union. The NLRB, however, doesn’t have the authority to wade into the dispute because a D.C. Circuit Court ruled in January that Obama’s recess appointments to the NLRB were illegal.

Cablevision, according to the Wall Street Journal, sought emergency injunctive relief from that same D.C. Circuit Court earlier this year to stop the NLRB from trying to adjudicate the dispute in the agency’s administrative court:

Cablevision is petitioning the D.C. Circuit to issue a writ of mandamus—a direct court order—prohibiting the NLRB from proceeding with unfair-labor-practice complaints against it and its parent company, CSC Holdings. Cablevision’s rationale is straightforward: The same D.C. Circuit ruled in January that President Obama’s non-recess recess appointments to the NLRB were illegal. Thus, the board has been operating without a quorum since January 2012….

Sequestration: An Inside Perspective

In two days, the sequestration axe will either drop, or it won’t.  Personally, I am about as close as you can get to the situation, and I have no idea how it will turn out.  While the “national security” argument against sequestration was gradually left behind, the arguments against the cuts have become increasingly economic in nature.  These arguments are problematic at best and disingenuous at worst.

A while back, I proposed a couple of ways to gradually cut more than sequestration does, therefore creating less pain in the current fiscal year; but as dieting often fails, cutting swiftly might be the only surefire method to actually cut spending.  Putting the cuts into perspective, as George Will did in his article this weekend, $85 billion from a $3.6 trillion budget, or 2.3%, is miniscule. The “draconian” cuts merely return us to 2006 levels.

I have been advocating deeper cuts for some time now, and as a defense contractor, am prepared to lose my job as a result (although I don’t expect to). I will try to be as objective as possible herein as I offer a couple of personal thoughts as we draw closer to the actuality of sequestration:

Guess who else is against the minimum wage?

minimum wage

Read these paragraphs and see if you can figure out who wrote them:

The Federal minimum wage has been frozen at $3.35 an hour for six years. In some states, it now compares unfavorably even with welfare benefits available without working. It’s no wonder then that Edward Kennedy, the new chairman of the Senate Labor Committee, is being pressed by organized labor to battle for an increase.

No wonder, but still a mistake. Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to subsidize their wages or - better yet - help them acquire the skills needed to earn more on their own.

An increase in the minimum wage to, say, $4.35 would restore the purchasing power of bottom-tier wages. It would also permit a minimum-wage breadwinner to earn almost enough to keep a family of three above the official poverty line. There are catches, however. It would increase employers’ incentives to evade the law, expanding the underground economy. More important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired.

[…]

The idea of using a minimum wage to overcome poverty is old, honorable - and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little.

Guess? Guess? Hmm? Give up? All right then, the individual who wrote this was…

7 on the 7th: Inaugural Low-Hanging Fruit Edition

I’ve decided to start a new feature here at United Liberty, one that would run on a monthly basis. I’m calling it “7 on the 7th.” It will be a list of 7 agencies, on the 7th of the month, that we should get rid of. The purpose is to showcase just how many government agencie that exist, which most Americans just don’t realize. While they may think the government does too much stuff, I doubt that many know just what the government really does. Most don’t know about the ridiculous organizations that are prt of our government, and I can say because I don’t know.

So this will be informative not just for you, dear reader, but also for yours truly. What sort of stupid things can we uncover? Feel free to submit your suggestions for next month’s feature in the comments (but please, don’t be silly and tell me we must get rid of the Department of Defense; we’re moderate, sensible libertarians here, not barking-at-the-moon anarcho-capitalists.) Hopefully, if enough on the web read this feature, we may be able to spark a genuine discussion about the role of government and what it should actually be doing, so when some politician says we need more money to fund essential services, we can tell him (or her) that nothing he (or she) is demanding funding for is actually essential.

Now, on to the inaugural list. For this one I’ve decided to go for the low-hanging fruit, to get them out of the way and remove temptations for future entries. I don’t really expect to surprise anyone with these, but that just goes to show you how many folks think a lot of what our government does is rubbish.

1 - Department of Homeland Security

Rand Paul’s New Plan to Prioritize Spending

Rand Paul

Senator Rand Paul has a new plan to prioritize government spending in order to stave off defaults and bring the country back towards solvency:

In a renewed attempt to force President Barack Obama’s hand on the debt limit, Kentucky Republican Sen. Rand Paul is pushing legislation that would ban federal spending on anything but interest payments on the national debt, Social Security checks, and military salaries.

Paul, who is traveling through Israel this week, told Business Insider here Thursday that he believes the GOP should take a more pro-active approach to the coming fight over raising the debt ceiling. Rather than march the country toward a government shutdown — and spook markets with possible default — Paul argued that Republicans should pass a bill that would force the government to prioritize payments to bondholders.

 


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